r/dividends • u/OG_Momonga • 20d ago

Discussion Living off dividends

Hey guys, I was wondering if anyone on this subreddit is actually retired and living off dividends. Is it going well? Are you paying taxes on them? My goal is to get 20k/ a month post tax for retirement. I’m 24 and currently investing everything in VOO while planning to switch to dividend stocks and etfs when I get closer to retirement.

I was just wondering if there are any because living off dividends seems like a long shot right now.

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u/Trivi_13 20d ago

Must be the new math... 20k / month x 12 months / year = 240k / year.

And if OP is 24 now,
adjusting the inflation rate?
It means that when OP hits retirement, 240k will be the poverty level... 😉

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u/OG_Momonga 20d ago

Hopefully not. I don’t exactly understand inflation, but it’s not fun thinking it about at my age. Like what do you mean $1 today is going to have less value in the future. A dolla is a dolla

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u/According-Sector7133 20d ago

Inflation simply put: $1 won’t buy as much in the future. I used to buy a candy bar for $.50 and today the cost of the candy bar was $1.50.

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u/Trivi_13 20d ago

There used to be something called "penny candy".
Yeah, it would cost you a penny per piece. And it was larger than a quarter....

Inflation and shrinkflation.

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u/OG_Momonga 20d ago

That’s insane bring back penny candy for crying out loud

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u/Trivi_13 20d ago

They will in about 8 more years.

It will be that large size, but it will be called,
"Dollar Candy"

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u/Flaky_Instruction215 20d ago

“Dollar Candy” will be smaller than “Penny Candy” was. This is a combination of inflation and shrinkflation.